Woodside may bid for Chevron’s stake in North West Shelf project

Australian energy major Woodside Petroleum reportedly announced that it may bid for Chevron’s stake in North West Shelf liquefied natural gas (LNG) project in Australia.

Last week, Chevron announced that it would begin a formal process after receiving ‘unsolicited approaches’ from potential buyers regarding the stake sale, reported Bloomberg.

The LNG project is operated and co-owned by Woodside.

Other equal partners in the North West Shelf project are BP, Royal Dutch Shell, BHP Group, and Japan Australia LNG.

Bloomberg cited Credit Suisse resources analyst Saul Kavonic as saying that the stake could be valued at $3.7bn.

North West Shelf Venture is based on the Burrup Peninsula near Dampier in the Pilbara region of Western Australia.

Reuters quoted Woodside Petroleum chief executive Peter Coleman as saying: “If there’s a way we can participate in that and get a better outcome for Woodside, then we’ll be at the table to participate.

“This has been the jewel in Woodside’s crown for a long period of time. You don’t want your neighbours to put up a for sale sign and then you get the wrong people moving in next door.”

In April 2019, Woodside Petroleum signed a ten-year heads of agreement with China’s ENN Group to supply LNG. Under this HOA, the Australian major will supply one million tonnes of LNG a year to ENN from 2025.